Market Trends of Analysis of the Fisheries and Aquaculture Sector in the GCC Region
This section covers the major market trends shaping the GCC Fisheries & Aquaculture Sector Market according to our research experts:
Government Initiatives for Sustainable Fish Farming
- The governments in the Gulf region have developed policies and favorable investment conditions to raise the level of fish farming in the region. The primary attributes of the development of the aquaculture sector in the region have been high import dependency, preservation of scarce freshwater, and potential for export surplus.
- Although the aquaculture industry is still in the burgeoning phase, Oman's Ministry of Agriculture and Fisheries has been making large-scale investments valued at USD 1.0 billion across 15,000 hectares of land for the development of the aquaculture sector. According to International Trade Center (ITC) Trademap, the import of fish in the country declined in 2021 by 62 million metric tons compared to the previous year due to the pandemic. The country is expected to produce 200,000 metric tons of fish between 2030 and 2040.
- The GCC aquaculture sector has seen a rise in local infrastructure projects in recent years due to the change in local fish consumption patterns, increasing local demand and new regional developments are also receiving public support.
- For instance, Saudi Arabia's megacity project Neom and Tabuk Fish Company signed an agreement to develop the Middle East and North Africa's (MENA) biggest fish farm as the Kingdom diversifies its economy. The agreement aims to expand local aquaculture production and apply the latest fish farming technologies in the futuristic Neom city. The capacity and innovative nature of the hatchery, combined with top-notch technologies, will help position Saudi Arabia at the forefront of sustainable marine aquaculture.
- Under Neom's new agreement with Tabuk Fish Company, the hatchery will operate with a capacity of 70 million fingerlings, making it the largest in the region. The hatchery will focus on improving the production of local fish species in the Red Sea to fulfill the Kingdom's goal of producing 600,000 tonnes of fish products by 2030.
- Moreover, the Saudi Ministry plays a crucial role in expanding the aquaculture sector to meet domestic demand and produce surplus fish for exports. According to World Bank, in 2020, the total fish production in Saudi Arabia reached 99,907 metric tons intending to surpass 600,000,0 metric tons in 2030. Therefore, the supportive government policies toward the objective of expanding the aquaculture industry are further expected to drive the market during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Increasing Consumption of Sea Food
- Due to their excellent nutritional value and low-fat protein food, the demand for fish and seafood is increasing among consumers. The rise in meat consumption, growing health concerns, changing diet patterns, urbanization, population, and economic growth are the factors influencing the higher preference towards seafood products.
- The United Arab Emirates (UAE) government is focusing on increasing aquaculture projects as it is a viable source for improving the region's food security which is the major concern in the country. Rapid growth and development and the diverse population of the UAE, coupled with the rising consumption of seafood, are likely to be the major factor that is driving the fisheries and aquaculture sector.
- The UAE has acquired food security through the availability of fresh fish. Some of the species preferred by the consumer are small pelagic fish, such as sardines and mackerel, and large pelagic fish, such as tuna. Also, grouper, emperor, tilapia, and pomfret are other species popular in the country.
- According to the Environment Agency - Abu Dhabi (EAD), in 2018, production in Abu Dhabi amounted to about 810 metric tons of aquatic organisms valued at approximately USD 5.06 million. Organic fish and seafood continued to grow in 2019, supported mainly by organic salmon.
- Westerners with high disposable incomes particularly seek organic variants when shopping for fish and seafood. The growing demand for high-protein diets is driving the demand for fish and seafood products to meet diet requirements. This trend is anticipated to rise exponentially, driving the fisheries and aquaculture market.
Get Analysis on Important Geographic Markets
Download Sample
